India's key equity index scales new high

Mumbai -- Indian equities, fuelled by market volatility, helped a key market index race past the 13,750 mark and scale new highs before losing some gains during the week ended Friday.

The 30-share sensitive index (Sensex) of the Bombay Stock Exchange (BSE) closed the week at 13,703.33 - up 273.85 points or two percent above the earlier weekly close of 13,429.48 points.

After a slow start in Friday's trading, the barometer index went past the 13,750 mark in the intra-day peak but ended just 22.50 points higher at 13,703.33.

The market opened Friday 13,669.81 points, peaked at 13,767.85 points in the intra-day trading and then fell to a low of 13,665.52 points before closing at 13,703.33 points.

Market analysts said that volatility was expected to increase in the next few sessions, fuelled by strong overseas fund buying.

"With the expiration of the November derivatives contracts just four sessions away, volatility is expected to increase in the next few sessions," said an analyst Saturday.

"The markets have risen by five percent in November alone and nearly by 46 percent for the year, led by substantial overseas fund buying," he said.

Among the Sensex shares, the rally was led by NTPC, up by 5.74 percent at Rs.150.10, followed by Tata Steel, up 2.46 percent at Rs.483.05 and Dr. Reddy's Laboratories Ltd up 2.40 percent at Rs.755.05.

Hero Honda led the Sensex losers, down 1.43 percent at Rs.736.30, followed by index heavyweight Larsen & Toubro, down 1.12 percent at Rs.1,386.95, and Bharti Telecom, down 1.09 percent at Rs.616.25.

Reliance Industries, ICICI Bank and HDFC were also among the losers.